Answer:
The journal entry to record this transaction would be:
April 1, 10,000 shares issued
Dr Cash 240,000
Cr Common stock 200,000
Cr Additional paid in capital 40,000
The balance sheet is affected:
Assets = Liabilities + Stockholders' equity
Cash = NA Common stock APIC
$240,000 $200,000 + $40,000
increases increases increases
The cash flow statement is also affected since cash from financing activities increases by $240,000. The statement of shareholders' equity is also affected because equity increases by $240,000.
The income statement is not affected.
The answer is Boxplot II. The standard deviation for the data associated with Boxplot II will likely have a larger standard deviation. Boxplot II has a greater spread than Boxplot I, as measured by the interquartile range, which is related directly to the standard deviation of a data set.
Answer:
c. 12%; 15.7%
Explanation:
The computations are shown below:
For expected rate of return:
= (Weightage of risky asset × return of risky asset) + (Weightage of treasury bill × return of treasury bill)
= (0.70 × 0.15) + (0.30 × 0.05)
= 10.5% + 1.5%
= 12%
For standard deviation:
= Weightage of risky asset × (variance ^ half)
= 0.70 × (0.05 ^ 0.5)
= 15.7%
Answer:
$215,059.85
Explanation:
we are not given appendix b or d, but we can still calculate the present value of Moore's contract using a 10% discount rate. You can use a financial calculator, but I prefer an excel spreadsheet with the net present value function:
=NPV(cash flows,rate) =NPV(35000 ... 35000,10%) = $215,059.85
Answer:
1.2
Explanation:
current ratio = current assets / current liabilities
- current assets = cash ($5,000) + accounts receivable ($15,000) + inventory ($40,000) + prepaid insurance ($3,000) = $63,000
- current liabilities = accounts payable ($15,000) + notes payable in 5 months ($12,500) + salaries payable ($25,000) = $52,500
current ratio = $63,000 / $52,500 = 1.2
